Alger Small Cap Focus Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. Class A shares of the Alger Small Cap Focus Fund underperformed the Russell 2000 Growth Index during the third quarter of 2020. You should check out Alger Small Cap Focus Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Alger Small Cap Focus Fund highlighted a few stocks and Alteryx Inc. (NYSE:AYX) is one of them. Alteryx Inc. (NYSE:AYX) is a computer software company. Year-to-date, Alteryx Inc. (NYSE:AYX) stock gained 25.1% and on December 28th it had a closing price of $125.22. Here is what Alger Small Cap Focus Fund said:
“Alteryx is the market leader in analytic process automation, or APA. Through its APA platform, Alteryx unifies analytics, data science and business process automation that democratizes access to data and analytics throughout business organizations. Shares of Alteryx underperformed because the Covid-19 pandemic continued to negatively impact sales cycles for the company, with some customers postponing or downsizing data analytics initiatives. We view these headwinds as transitory and note that Alteryx has quickly adapted its go-to-market strategy to better engage these budget-conscious customers through greater usage of short-term licenses. Longer term, we believe that Covid-19 is a tailwind for Alteryx as companies realize the need for better data and analytic capabilities to adapt to dynamic business environments. In August, Alteryx announced it continued to make progress operationally during the second quarter with partnership with Adobe and UiPath and three new product launches that we believe have increased the company’s potential for generating revenue growth.”
Earlier this month, we published an article revealing that Brown Capital Management Small Company Fund is bullish on Alteryx Inc. (NYSE:AYX) stock. The investment firm believes that Alteryx has a large market opportunity and a long runway for multiyear growth.
In Q3 2020, the number of bullish hedge fund positions on Alteryx Inc. (NYSE:AYX) stock decreased by about 15% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Alteryx’s growth potential. Our calculations showed that Alteryx Inc. (NYSE:AYX) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.